USDC: A Stablecoin Crisis

On Sunday evening, March 12, the FDIC announced that the $250,000 limit on insurance would be waived. All deposits held at Silicon Valley Bank would be extended to blanket guarantee. Circles $3.3 billion was safe, and in moments, the price of USDC rocketed back up to its $1 peg. The moral of this part of the story is that the government's official cap of $ 250,000 was never very serious.